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10:49 25.04.2025 •
After the euro jumped against the dollar, French president Emmanuel Macron quizzed central bank chief Christine Lagarde on the outlook for the exchange rate in private conversations in Brussels, according to people briefed on the discussions. Lagarde had been trying to persuade European Union leaders that Trump’s return offers opportunities to the bloc, the people said, Bloomberg informs.
As the US president tears up his nation’s economic playbook — creating market turmoil globally — some of Europe’s policymaking elite sense a window of opportunity for the continent’s single currency.
“We shouldn’t hide, the euro has been a great success for 25 years,” Bundesbank President Joachim Nagel said on a visit to the French capital. “In the end, if we position ourselves as more competitive, then the euro as a reserve currency will benefit more strongly.”
The French president, a former investment banker, has seized the opportunity to push his vision of Europe as a truly autonomous geopolitical force.
The door is opening as Trump shakes the foundations of the dollar as the world’s global currency. He’s upending commerce with tariffs and verbal attacks on both friends and foes, weakening commitments to NATO, and advisors have talked of a so-called Mar-a-Lago Accord that could reorder global finance.
But a structural shift of global reserves from dollars into euros is a very long-term idea, if it’s even possible. Past bouts of speculation about the US currency getting surpassed have repeatedly proved misplaced.
The latest figures show the euro made up only 20% of foreign reserves around the world, while the dollar had close to 60% — a dominance that has shifted little over time.
And while the Trump administration’s hostility spurs EU politicians to take some significant steps, efforts to complete the EU single market with a full banking union and capital markets union have been stalled for years.
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